Italy has released a new ‘white list’ — jurisdictions that provide for an adequate exchange of tax information with Italy. The list includes countries and territories, such as the Cayman Islands, Bermuda, Jersey, Guernsey, that previously lacked access to several favorable domestic Italian tax regimes, such as certain withholding and capital gain exemptions.
Broadening the white list allows Italian-resident taxpayers to benefit from certain domestic tax provisions, such as the notional interest deduction (NID) on equity contributions received from persons established in those countries.
The new Italian white list is expected to take effect on September 6, 2016, the 15th day following the date that it was published in the Italian Official Gazette. We expect the Italian tax authorities to further clarify the new white list’s effectiveness.
Global International Tax Services Leader, PwC US